While the world is focused on the Rio+20 events in 2012, it's worth looking back to some of the thinking that led to Rio in 1992. The blueprint definition for sustainable development that came out from the UN in 1987 is the Brundtland Commission's "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".

It contains two key concepts: needs; and limitations imposed on the environment.

For me, Brundtland's twin focus boils down to a question of means and ends. The means is how much planet we have left and the ends is understanding where we actually want to get on our journey. While this journey can perhaps continue in qualitative terms, on a finite planet, already pushed to breaking point, we surely cannot continue in quantitative terms.

Growth versus development

As the ecological economist Herman Daly points out, there is an important distinction hto be made between growth, which is quantitative, and development, which is qualitative. Even the most orthodox economist has to admit that on a finite planet we cannot grow exponentially forever. Economists may argue that we can somehow decouple planetary impacts from economic growth, but the evidence is clear that such ideas are dangerous myths.

We need to ask ourselves what sort of development might be sustainable. And answering this calls for a redefined version of prosperity that takes a good hard look at the ends part of the blueprint and asks what it is we are striving for. Is it more and more stuff? Or is it flourishing, meaningful lives for all?

Twenty-five year review – efficiency or sufficiency?

So how are we doing almost 25 years on from Brundtland's blueprint? Well, as I pointed out in a recent blog post, my feeling is that we have somewhat lost our way in sustainability and CSR circles. We've become overly focused on one half of the sustainable development journey.

Sustainability and CSR have largely missed the needs part of the equation and focused mainly on the means. Progressive companies are well versed in grappling with environmental limits and efficiency – the means – but have little or no real understanding of the ends – finding sufficiency.

With a lack of leadership from politicians, business leaders are well aware that, despite the best efforts of some, we are rapidly heading in the wrong direction on most indicators of environmental sustainability. Many of these same leaders are worried that their current CSR efforts are far from sufficient to turn this tide and are looking for a new strategic compass. Progressive business leaders such as Ian Cheshire and thinkers such as Naomi Klein are joining the debate about the nature of capitalism and what might replace or reform it.

The wrong route-map?

This focusing on just the means whilst ignoring the ends is akin to obsessing about how much fuel is in your tank without knowing your destination or route. Only by asking what the real needs are can we determine a true meaning of 'progress' and understand where we are trying to get to as a society.

To understand these real needs (as opposed to advertising-created wants) we have to examine the evidence from positive psychology, welfare economics and wellbeing. And there is now a huge and growing body of research into what brings wellbeing. Governments, including the UK's, are now measuring wellbeing with the intention of developing policy around it. This understanding of needs completes the strategic compass we need to use to determine our destination and thus a clearer route to sustainable development.

The good news and looking forward

The good news is that there are plenty of ideas out there about the general direction we need to take and the eventual endpoint. Economies, enterprises and society itself can regroup around an updated vision of progress that puts real wellbeing-needs at its heart, as opposed to on the sidelines.

There will be a wellbeing dividend for sustainability efforts, but only if we take a fuller view of the meaning of sustainable development. So lets make 2012 not only a celebration of 20 years since the Rio Earth Summit, but the year that society re-found the true meaning of prosperity, through a focus on needs and wellbeing.